Questions raised by NT enviroment deal

A new deal allowing the Commonwealth to take over assessing mining and building projects in the Northern Territory has environmental groups worried.

The NT is the final jurisdiction to sign a bilateral agreement for environmental assessments with the Commonwealth, which Environment Minister Greg Hunt says will reduce red tape and save businesses $420 million a year.

Mr Hunt will retain responsibility for approving projects, while the NT Environmental Protection Agency (NTEPA) will create an assessment process to satisfy both governments.

However, the NT's Environmental Defenders Office (EDO) and the Environment Centre (ECNT) are calling for an overhaul of the NT's water, petroleum and mining management laws if proper assessments are to take place under the new regime.

"NT environmental legislation is very weak," Anna Boustead of the ECNT said.

"There are also very limited resources made available for compliance and regulation, which is not in proportion to the amount of mining and threatening activities going on."

The one-stop shop police erodes an extra check in place to catch the NT government if it makes mistakes, she said.

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David Morris of the EDO said environmental regulations should not be characterised as a burden on business.

"They're an essential element of a healthy society; they protect pristine ecosystems, they prevent our society from having to deal with improper developments that impact on our health, communities and future generations," he told AAP.

The Commonwealth should retain a power of assessment in cases where the NT would be the proponent or a benefactor from a proposal in order to prevent an inherent conflict, he said.

Ms Boustead said "it would be a serious concern" if the Commonwealth moved to allow the NT to approve projects, as other states were currently negotiating.

"We feel that in the NT, they just don't have the capacity, skills, experience or legislation to back it up to protect (those) matters adequately," she said.